FISCAL NOTE
Date Requested: February 29, 2016 Time Requested: 09:42 AM |
Agency: |
Lottery Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2776 |
Comm. Sub. |
HB4625 |
|
CBD Subject: |
Agriculture |
---|
|
FUND(S):
State Road Fund, State Lottery Fund, State Excess Lottery Fund
Sources of Revenue:
Special Fund,Other Fund State Road Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This Com Sub will redirect revenues from the Greyhound Development Fund AND greyhound purses to the State Road Fund.
It is important to note that the revisions made in this Com Sub eliminate funding for greyhound racing, but does not decouple the racetrack casinos from racing requirements. Therefore, the casinos will be forced to shut down gaming unless they assume all costs related to purses and greyhound racing. Therefore, while this Com Sub may increase deposits into the State Road Fund, it could result in a much greater loss to the State Lottery Fund and State Excess Lottery Fund, if the greyhound racetracks are unable to meet requirements for licensure and cease gaming operations.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2016 Increase/Decrease (use"-") |
2017 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
1,000,000 |
-44,072,327 |
-44,072,327 |
Explanation of above estimates (including long-range effect):
Revenue impact in FY16 was calculated for the remaining portion of the current fiscal year. FY17 is the first full year upon implementation. No additional costs will be incurred.
It is important to note that the revisions made in this Com Sub eliminate funding for greyhound racing, but does not decouple the racetrack casinos from racing requirements. Therefore, the casinos will be forced to shut down gaming unless they assume all costs related to purses and greyhound racing. Therefore, estimated total revenues were calculated as follows with the assumption that gaming activity would cease:
Current Year: $1 million to the State Road Fund (SRF)
FY17/First Full Year Implementation: $2 million deposit to the SRF
Lottery Fund [if greyhound tracks cease gaming]: -$32,256,002
Excess Lottery Fund [if greyhound tracks cease gaming]:-$13,816,325
Total Revenues: -44,072,327
Memorandum
This Com Sub eliminates the Greyhound Development Fund and purse funds for greyhound racing without decoupling the racetrack casinos from racing. If this Com Sub were revised to allow the casinos to decouple from racing then it would result in a $10.5 million deposit into the State Road Fund and an additional $4.1 million would be available for appropriation [previously appropriated for purses].
Person submitting Fiscal Note: Danielle E. Boyd, Lottery General Counsel
Email Address: dboyd@wvlottery.com